Answered: assuming the following ratios are…

assuming the following ratios are constant, what is the growth rate? Total asset turnover 1.7 Profit margin0.072 Total assets/Equity = 2.15 Payout ratio0.42

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...

See similar textbooks

Related questions

Q: The company's asset turnover is 0.9 payout ratio is 0.60 and price earnings ratio is 10, the…

A: The dividend yield is expressed as the shareholder's return on his initial investment amount for…

Q: If we know that a firm has a net profit margin of 4.5%, total asset turnover of 0.72, and a…

A: Dupont analysis is an evaluation method that determines the three components of return on equity…

Q: Crosby Company has provided the following comparative information

A: Since you have asked many multipart questions, we are answering you the first three questions. To…

Q: Loreto Inc. has the following financial ratios: asset turnover = 2.20; net profit margin (i.e., net…

A: Here, Asset turnover = 2.20 Net profit margin = 6% Payout ratio = 40% Equity/ assets = 0.50 To Find:…

Q: What is the equity multipier on 4% profit margin, a total asset turnover of 2 and return on equity…

A: Profit Margin = Net Income / Net Sales Total Asset Turnover Ratio = Net Sales / Total Assets…

Q: Henderson's Hardware has an ROA of 15%, a 5% profit margin, and an ROE of 23%. What is its total…

A: The term return on assets is the measure of returns that are generated using the total assets of the…

Q: a) Calculate Earning per Share (EPS) under each of the three economic scenarios, before any debt is…

A: Information Provided; EBIT = $21,000 Marker value without debt = $165,000 Expansion = 25% higher…

Q: Henderson's Hardware has an ROA of 11%, a 7% profit margin, and an ROE of 18%. A). What is its…

A: Total assets turnover Return on assets = Net profit / Assets turnover So, Assets turnover = Return…

Q: QUESTION 10 A company has a Return on Equity of 0.36, a Profit Margin of 0.15 and Total Asset…

A: The Return on Equity as per Du Pont Model will be calculated. The return on equity using the DuPont…

Q: Analyze the following ratios (Good/Not good, Undervalued/Overvalued, or just OK) based on the given…

A: Analyze the following ratios (Good/Not good, Undervalued/Overvalued, or just OK) based on the given…

Q: intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit…

A: Profit Margin: It is a measure of profitability for the business. It is the ratio of net profit to…

Q: Calculate working capital turnover ratio, from the following information: Current Assets Current…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: consider a company with ROE of 14.5% and a profit margin of 6.5%. if the total asset turnover is 1.8…

A: Debt equity ratio is a leverage ratio. It gives relative measure of debt to equity. Here Dupont…

Q: XTY Company has total assets turnover ratio of 1.90 and a return on total assets of 7.20%. What is…

A: Asset turnover ratio = 1.90 Return on assets = 7.20%

Q: A company has a Return on Equity of 0.23, a Profit Margin of 0.1 and Total Asset Turnover of 0.4.…

A: As per Dupont Analysis, Return on equity = Net Profit Margin * Asset Turnover ratio * Equity…

Q: If Average assets and capital are 900,000 and 540,000, respectively, with a net income of 47,520,…

A: Return on equity is a type of financial ratio of a company. Return on equity is a performance…

Q: a) What is the current ratio? b) What is the quick ratio?

A: Given Current liabilities = 2500 Net working capital= 800 Current assets-2500=800 Current assets =…

Q: Assuming constant capital intensity ratio and full-capacity operation, the increase in total assets…

A: External Funds Required: The external funds required for any year are forecasted based on the…

Q: Loreto Inc. has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net…

A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

Q: The Saw Mill has a return on assets of 6.1 percent, a total asset turnover rate of 1.8, and a…

A: Given: Return on assets = 6.1% Total asset turnover rate = 1.8 Debt - Equity ratio = 0.6

Q: Solvency and Profitability Trend Analysis Addai Company has provided the following comparative…

A: Ratio analysis is a mathematical way of determining a liquidity position, operating efficiency, and…

Q: Addai Company has provided the following comparative information: 20Y8…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Based on the following information, calculate the sustainable growth rate for Kaleb's Welding…

A: In the given question return on equity will be Calculated with the help of following formula Return…

Q: Red Fire has a Debt/Equity Ratio of .15, and Equity Multiplier of 1.15, a return on sales of 6.4,…

A: Here, Debt Equity Ratio is 0.15 Equity Multiplier is 1.15 Return on Sales is 6.4 Asset Turnover is…

Q: If we know that a firm has a net profit margin of 4.5 % total asset turnover of 0.65, and a…

A: Calculation of ROE:The ROE is 4.30%.

Q: If we know that a firm has a net profit margin of 4.3 %, total asset turnover of 0.77, and a…

A: The computation of ROE is as follows: Hence, the return on investment is 4.50%

Q: Solvency and Profitability Trend Analysis Addai Company has provided the following comparative…

A: Times interest earned ratio is one of the ratio which shows how much times net income is available…

Q: DuPONT ANALYSIS Henderson’s Hardware has an ROA of 11%, a 6% profit margin, and anROE of 23%. What…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: QUESTION 9 A company has a Return on Equity of 0.2, a Profit Margin of 0.12 and Total Asset Turnover…

A: Return on equity = 0.2 = Net Income / Equity Profit margin = 0.12 = Net Income / Sales Asset…

Q: Assume the following ratios are constant: Total asset turnover 2.6…

A: The maximum growth which a firm can achieve by using internal resources and fund is known as…

Q: A company has a Return on Equity of 0.2, a Profit Margin of 0.12 and Total Asset Turnover of 0.48.…

A: Return on Equity can be calculated using the DuPont formula. It breaks the calculation using three…

Q: (Click the icon to view the table.) in the missing information in the preceding table. (Enter the…

A: 1) Sales = Operating Income Sales Margin (ROS) Sales Margin (ROS) =39900114000 Sales…

Q: Gardial & Son has an ROA of 9%, a 5% profit margin, and a return on equity equal to 19%. What is the…

A: Total Assets Turnover Ratio is the ratio between the company's sales or revenue with the total…

Q: A company has a Returm on Equity of 0.39, a Profit Margin of 0.2 and Total Asset Turnover of 0.55.…

A: Here, Return on Equity is 0.39 Profit Margin is 0.2 Total Asset Turnover is 0.55

Q: Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net…

A: Asset Turnover = 2.40 Net Profit Margin = 5% Equity/ Asset=0.40 Payout Ratio =30% Retention Ratio =…

Q: Assume the following ratios are constant. Total asset turnover 1.49 Profit margin 8.7%…

A: Step 1: introduction Sustainable growth rate is the maximum sustainable growth rate of a company…

Q: What is the return on assets? Return on Stockholders' equity? If the firm has a asset turnover ratio…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Question

assuming the following ratios are constant, what is the
growth rate?
Total asset turnover 1.7
Profit margin0.072
Total assets/Equity = 2.15
Payout ratio0.42

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test, ratio Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE) Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share Trend analysis; comparative ratio analysis; benchmarking DuPont equation; window dressing; seasonal effects on ratios
From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio for each of the peer companies. (Hint ROA = Profit margin Total assets turnover.) Once youve calculated each peers total assets turnover ratio, then you can use the DuPont analysis to calculate each peers equity multiplier.
Using the statements provided Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on assets Return on stockholders’ equity For example: you should present it like the text, or as:Gross margin = 1,933 divided by 8,689 = 22.2% A competitor of ACME has for the same time period reported the following three ratios: Current ratio 1.52Long-term debt to equity .25 or 25%Net profit margin .08 or 8% Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.
I Current ratioli. Times interest earnedjli. Inventory turnover¡v. Total asset turnoverv. Operating profit marginVi. Debt ratiovi. Average collection periodVii Fixed asset turnoverixReturn on equity
What are three of the benefits of common-sized analysis using the inverse operating asset turnover (ATO) ratios? a) provides insight into the age of the assets b) the item is expressed as a percentage of current year sales c) is more comparable year-to-year than other methods d) negates the issue with small denominators e) it provides a common denominator for all accounts
In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio
What are the annual sales for adorn with $0.5 M in liabilities a total debt ratio of 0.5 and an asset turnover of 4.0 assume assets remain unchanged?
1. Suppose that the equity multiplier is -2,8. Asset turnover is 2. Long-term liabilities are 400 TL. Current ratio 1,5. Non-current assets are 100 TL. What will be the net sales amount? a. 482,76 TL b.637,93 TL c.965,52 TL d.1.120,69 TL
Compare the performance of Fly X to the Industry. For each ratio, comment on whether Fly X is positive or negative relative to the Industry. Median Industry Fly X Ratios Current Ratio 1.43X 1.45 Quick Ratio 0.84X 0.88 Total Asset Turnover Ratio 0.85 1.30 Inventory Turnover Ratio 6.15 12.10 Average Inventory Ratio 59.35 30.17 Receivables Turnover 9.82 13.08 Average Collection Period 37.17 27.90 Debt Ratio 0.52 0.39
Assume that the following ratios are constant. Total asset turnover 1.37, profit margin 6.9%, equity multiplier 1.7, payout ratio 57%. What is the sustainable growth rate?
Based on the information above, what is Total Asset Turnover Ratio of ratio of the firm? Group of answer choices 1.40 1.68 1.12 1.19
Given:Avarege trade receivables of afirm is40.000,average finished goodsis 50.000, cost of goods sold is 200000 and net sales is 250.000. Whatis trade receivables turnover? a. 250.000/40.000 b. 40.000/ 200.000 c. 40.000/250.000 d. 200.000/ 40.000 ========== 5. Activity Ratios are used in the assessment ofa) The financial risk of the companyb) the profitability of the assetsc) the short term debt repayment capacity of the firm d)the efficiency of the asset or the source analyzed